Still haven’t filed your ITR? Last minutes tips to get through

Last-minute tax tips: July 31 is here, and it’s the final day to submit your ITR. The rush to meet the deadline can lead to errors and missed opportunities. In the rush, mistakes are common, but you can still ensure a smooth filing process. Here are some last-minute tips to file your ITR without issues:

Don’t wait for deadline extension

Although there are expectations of a deadline extension to August 31, it’s advisable not to wait. The Income Tax Department has repeatedly urged taxpayers to file their returns as soon as possible.

Gather all necessary documents

Before starting your ITR filing, ensure you have all required documents ready. This includes Form 16 from your employer, interest certificates from banks and post offices, TDS certificates, investment proofs for deductions under Sections 80C, 80D, etc., and Form 26AS for tax credit details.

Claim deductions and exemptions

For those opting for the old tax regime, maximise your tax savings by claiming all eligible deductions. Available deductions include:

• Section 80C: Investments in PPF, NSC, ELSS, etc.
• Section 80D: Health insurance premiums.
• Section 24(b): Interest on home loans. Make sure you have supporting documents for these claims.

Avoid ineligible deductions

Be cautious not to claim deductions you’re not entitled to. For instance, fraudulent claims under sections 80G or 80U could lead to notices from the Income Tax Department. Use AI tools and the Annual Information Statement (AIS) to verify the accuracy of your claims.

Disclose foreign assets

If you have foreign assets such as bank accounts, shares, or property, ensure they are properly declared in your ITR and Schedule FA. Failure to report these assets can lead to penalties of up to Rs 10 lakh and potential legal issues under the Black Money Act. Even if recent budget changes have eased penalties for some foreign assets, the reporting obligation remains.

Match Form-16 and Form-26AS data

Download Form-26AS and compare it with your Form-16 and other financial documents. Any discrepancies should be corrected before filing to avoid notices from the tax authorities.

Choose the correct ITR form

Selecting the correct ITR form is crucial. For instance, ITR-1 (Sahaj) is for individuals with income up to Rs 50 lakh from salaries, one house property, and other sources. ITR-2 is for those with income from business or profession. Using the wrong form can lead to the rejection of your ITR.

Include income from previous employers

If you’ve changed jobs during the financial year, include income from both your previous and current employers. Overlooking this could result in tax notices for unreported income.

Don’t rely solely on Form-16

Form-16 alone may not capture all your income. Cross-check your bank statements and capital gain statements to ensure all income sources are reported accurately.

Avoid common mistakes

Be mindful of common errors, such as entering incorrect personal information, errors in bank account details, misreporting or omitting income, and incorrect computation of total income and tax liability. Double-check account numbers, IFSC codes, and other relevant details.

E-verify your ITR

Your ITR is not complete until it’s verified. Use e-verification options like Aadhaar OTP or net banking to complete this process. If verifying physically, ensure the signed ITR-V is sent to the CPC within 120 days of filing.